After slashing jobs during a bumpy period in 2023, Canadian online used car seller Clutch says it has turned the corner and is poised for growth.
That’s according to CEO Dan Park, who told BNN Bloomberg in an interview on Tuesday that the company has just closed a $50 million financing round that reflects the company’s soaring valuation and strong expansion plans.
Clutch is Canada’s largest online seller of used cars, giving Canadian car owners and would-be buyers up to 140,000 quotes a week. Valuations are market-based on real time supply and demand, so both sides of a deal know exactly what they can expect if they choose to buy or sell, Park explained.
“There’s no haggling,” he said. “What you get is transparent.”
The company announced $50 million in a Series D financing round this week, the culmination of a multi-year process. Clutch’s revenues have grown by 300 per cent in the past three years to more than $400 million, and the company turned a profit last year.
That rosy outlook is a U-turn from 2023, when a $95 million funding round fell through, resulting in the company having to lay off two thirds of staff and pull out of Western Canada.
This week’s funding round will allow Clutch to expand into more markets again.
“It’s nice to be back on our growth trajectory, having solved a lot of our foundational issues we had back in 2022 and 2023,” Park said.
“There is a lot of potential for our business.”
